The FBMKLCI closed marginally higher yesterday, adding 0.53pt to settle at 1,765.87. Meanwhile, Asian shares briefly turned higher as China’s official factory gauge held up, adding to signs the world’s second-largest economy has maintained some of its firstquarter momentum. The MSCI Asia Pacific Index dropped less than 0.1%, paring its advance for May to 2.6%. The FBMKLCI’s top gainers were Westports Holdings (+4.6%), Petronas Dagangan (+2.7%) and CIMB Group Holdings (+2.2%), while the top losers were Maxis (-3.9%), Astro Malaysia Holdings (-2.7%) and Petronas Gas (-1.6%). In the broader market, losers outpaced gainers 501 to 437 with 331 counters unchanged. Turnover was 2.74b shares valued at RM5.17b. The FBMKLCI registered a “spinning top” pattern which hinted at the indecisive nature of yesterday’s movement. The index failed to recover from an earlier gain to close above both 7-day and 21-day EMA lines, thus forcing the short-term outlook to remain on a downside bias. The RSI line is still trading at 50pt despite a flat reading yesterday while weaker signals from DMI suggest a consolidation ahead. Support and resistance levels are as follows:

• Support: 1,755,1,729
• Resistance: 1,787, 1,800

US stocks closed lower on Wednesday, led by a slump in financials, amid economic data signalling that a slowdown in inflation could dampen the Federal Reserve's outlook concerning longer-term rate hikes. The DJIA closed down at 21,008.65, down 0.10%. The S&P 500 closed roughly flat while the Nasdaq Composite closed at 6198.52, down 0.08%. Rising stocks outnumbered declining ones on the NYSE by 1,626 to 1,595 and 37 ended unchanged; on the Nasdaq Stock Exchange, 1,262 fell and 1,232 advanced, while 136 ended unchanged.

Source: UOB Kay Hian Research - 1 Jun 2017